Saudi Arabia Loyalty Programs Market Intelligence and Future Growth Dynamics - 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2025 Update

The loyalty market in Saudi Arabia is expected to grow by 15.4% on annual basis to reach US$842.5 million in 2025.

In value terms, the loyalty market in the country has recorded a CAGR of 17.2% during 2020-2024. The loyalty market in the country will continue to grow over the forecast period and is expected to record a CAGR of 13.0% during 2025-2029. Loyalty market in this region is expected to increase from US$730.3 million in 2024 to reach US$1.37 billion by 2029.

This report provides a detailed data-centric analysis of the loyalty market opportunities and risks across a range of end-use sectors and market segments in Saudi Arabia. With over 50 KPIs at the country level, this report provides a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics.

The publisher’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Key Insights

The loyalty program environment in Saudi Arabia is experiencing a major change, influenced by technological advancements, shifting consumer preferences, and favorable government policies aligned with Vision 2030. Digital loyalty platforms are becoming the cornerstone of customer engagement, fueled by the rise of e-commerce, smartphone penetration, and fintech innovation. The shift toward tiered loyalty programs reflects the growing demand for personalized and value-driven rewards, particularly in retail. Additionally, fintech integration enhances loyalty ecosystems by introducing innovative and seamless rewards systems.
Data-driven personalization is emerging as a critical enabler for brands to deliver tailored experiences, while coalition programs are reshaping the loyalty landscape by fostering partnerships across industries. These trends will likely intensify over the next 2-4 years as technology adoption accelerates and consumer expectations evolve. Businesses that embrace these trends and invest in customer-centric, data-driven loyalty solutions will be well-positioned to build stronger, longer-lasting relationships with their customers in Saudi Arabia's dynamic and competitive market.

Growing Adoption of Digital Loyalty Platforms

• Digital loyalty platforms are becoming increasingly popular in Saudi Arabia, driven by the country's rapid digital transformation. These platforms, including mobile apps and web-based solutions, allow customers to collect and redeem points, access exclusive offers, and engage with brands in real-time. For instance, STC Pay has integrated loyalty features into its digital wallet, enabling users to accumulate points for various transactions.
• The e-commerce boom in Saudi Arabia, supported by high smartphone penetration and an expanding digital payment ecosystem, has significantly contributed to adopting digital loyalty platforms. Platforms like Noon and Amazon Saudi Arabia have implemented loyalty features such as cashback and discounts for frequent buyers. Additionally, government initiatives under Vision 2030, which emphasize digital transformation and cashless transactions, have created a conducive environment for digital loyalty programs. The tech-savvy younger population, a significant portion of Saudi Arabia's demographic, prefers convenient, tech-driven solutions over traditional loyalty cards.
• In the coming years, partnerships between loyalty platforms and e-commerce or fintech players are expected to rise, creating integrated ecosystems. Brands will likely adopt Artificial Intelligence (AI) to offer personalized rewards based on consumer behavior. Traditional loyalty programs may phase out as digital solutions dominate the loyalty landscape.

Rise of Tiered Loyalty Programs in Retail

• Retailers in Saudi Arabia are increasingly introducing tiered loyalty programs to engage customers with varying spending capacities. For example, Jarir Bookstore offers a tiered system where frequent shoppers receive higher rewards and better discounts as they progress through membership levels.
• The retail sector in Saudi Arabia is highly competitive, prompting brands to differentiate themselves by offering tailored rewards to retain customers. Rising incomes and urbanization have led to increased consumer spending, particularly on premium and luxury products, which supports the success of tiered loyalty programs. Additionally, Saudi consumers now expect more value for their loyalty and demand exclusive rewards for higher spending levels.
• Luxury and premium retail brands will likely adopt tiered loyalty programs to foster long-term customer relationships. Retailers may invest in technology to monitor customer journeys and deliver more targeted rewards. Rather than relying solely on monetary benefits, these programs will increasingly focus on experiential rewards, such as early access to new products or VIP events.

Loyalty Integration with Fintech Services

• Fintech companies in Saudi Arabia are increasingly incorporating loyalty features into their services. For instance, Hala, a Saudi fintech, provides cashback and reward points for transactions made through its platform.
• The expanding fintech landscape in Saudi Arabia, with over 140 licensed fintech firms in 2024, has created opportunities for loyalty innovation. The government’s push for a cashless economy as part of Vision 2030 encourages fintech companies to offer loyalty incentives to drive digital payments. Additionally, Saudi consumers’ increasing trust in fintech platforms makes them a suitable channel for loyalty engagement.
• Fintech loyalty programs are expected to expand beyond cashback to include rewards such as investment benefits, travel perks, and lifestyle advantages. Banks and fintech firms may collaborate to create unified loyalty ecosystems, allowing users to transfer or merge points across platforms. These value-added loyalty features are likely to drive the adoption of digital wallets further.

Growing Focus on Data-Driven Personalization

• Loyalty programs in Saudi Arabia are leveraging data analytics to deliver personalized rewards and offers. Retailers like Danube and Carrefour use customer data to curate tailored discounts and promotions.
• Adopting advanced analytics tools has enabled companies to better understand customer behavior. Evolving consumer preferences in Saudi Arabia now favor brands that provide relevant and personalized rewards instead of generic offers.
• Brands will likely use predictive analytics to anticipate customer needs and offer rewards before competitors. Stricter regulations on data privacy may emerge, encouraging companies to adopt transparent practices. Hyper-personalization will dominate loyalty marketing, leading to increased customer engagement and retention.

Increased Collaboration Between Brands

• Coalition loyalty programs are gaining traction in Saudi Arabia as brands partner to offer cross-industry rewards. For instance, Saudia Airlines’ Alfursan loyalty program collaborates with hotels, car rentals, and retail stores to provide diverse customer benefits.
• Saudi consumers demand loyalty programs that offer rewards across multiple industries rather than being limited to a single brand. The cost-sharing model of coalition programs reduces the financial burden of loyalty rewards on individual brands, making them more sustainable. Additionally, the government’s heavy investment in tourism has prompted brands in this sector to collaborate to attract and retain both international and domestic travelers.
• More industries like healthcare and education may join coalition loyalty programs. Collaborative programs are expected to dominate the loyalty landscape, offering greater convenience and diversity to consumers. Competition among coalitions will likely increase, enhancing benefits and seamless redemption options.

Competitive Landscape and Regulatory Changes in Saudi Arabia’s Loyalty Market

The competitive landscape in Saudi Arabia's loyalty market is vibrant, with a blend of dominant players and niche-focused startups shaping the industry. The moderately fragmented structure provides opportunities for collaboration, but market entry remains challenging due to regulatory compliance, consumer trust issues, and the need for technological investments. Over the medium term, the market is expected to consolidate, with a focus on innovation and cross-sector partnerships. Regulatory changes, particularly in data privacy and digital payments, will continue to influence the competitive dynamics, ensuring a more transparent and consumer-friendly environment. To succeed in this dynamic market, businesses must remain agile, invest in technology, and align with the evolving regulatory framework.

The loyalty market in Saudi Arabia is competitive, with a mix of established local players, global companies, and fintech startups vying for market share. Prominent players such as STC Pay, Saudia Airlines’ Alfursan program, and Jarir Bookstore's loyalty initiatives dominate specific sectors, including telecom, travel, and retail. At the same time, global brands like Amazon, Saudi Arabia and Carrefour bring international expertise and resources, adding further competition. Fintech startups such as Hala and Geidea are rapidly entering the market with innovative digital loyalty solutions, targeting tech-savvy younger consumers.
The market is moderately fragmented, with different players focusing on specific verticals. While dominant players control significant portions of their respective industries (e.g., telecom, travel, and large retail chains), smaller players in niche markets such as luxury retail, e-commerce, and local service industries are also thriving. This diversity balances a few large players and numerous smaller, specialized companies, fostering collaboration and competition.

New entrants to the loyalty market in Saudi Arabia face several challenges:

• Adhering to the Kingdom's strict regulations on data privacy, digital payments, and customer engagement can be barriers to entry.
• New players can find it challenging to gain customer trust in a market where established brands already dominate, especially in fintech and digital platforms.
• Sectors like retail and e-commerce already have multiple loyalty programs, making it hard for new entrants to differentiate themselves.
• Investing in advanced technology for personalization, AI, and data analytics can pose significant financial and operational hurdles for smaller players.

Regulatory Changes in the Last 12 Months

Several regulatory changes have shaped the competitive landscape of Saudi Arabia’s loyalty market:

• The implementation of the Personal Data Protection Law (PDPL) in March 2023 mandates stricter data privacy compliance for businesses collecting customer information. This regulation has encouraged transparency and increased operational complexities for loyalty program providers.
• The Saudi Central Bank (SAMA) has introduced guidelines for digital payment platforms, promoting security and consumer protection while fostering innovation in fintech-driven loyalty solutions.
• Recent updates to e-commerce laws in 2024 require greater transparency in customer transactions, including loyalty rewards and benefits, to protect consumers from deceptive practices.
• These changes aim to build consumer trust, encourage fair competition, and support the government's broader Vision 2030 digitalization and economic diversification goals.

Expected Changes Over the Next 2-4 Years

• While the market is moderately fragmented, consolidation is expected as larger players acquire smaller firms to expand their customer base and technological capabilities.
• Fintech companies will continue to grow and diversify their loyalty offerings, intensifying competition, especially in digital wallets and payment-linked loyalty programs.
• More cross-sector partnerships, particularly between retail, e-commerce, and travel, are expected to provide comprehensive coalition loyalty programs.
• As data-driven marketing becomes a priority, companies that invest in AI and analytics to deliver hyper-personalized rewards will gain a competitive edge.
• Stricter regulations on data privacy and transparency may level the playing field, reducing unfair practices and protecting consumers while increasing business operational requirements.

Scope

This report provides in-depth, data-centric analysis of loyalty programs in Saudi Arabia. Below is a summary of key market segments.

Saudi Arabia Retail Sector Spend Value Trend Analysis

• Ecommerce Spend
• POS Spend

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators

Value Accumulated and Value Redemption Rate of Loyalty programs in Saudi Arabia

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains

• Loyalty Schemes
• Loyalty Platforms

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type

• Points programs
• Tier-based programs
• Mission-driven programs
• Spend-based programs
• Gaming programs
• Free perks programs
• Subscription programs
• Community programs
• Refer a friend program
• Paid programs
• Cashback programs

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Channel

• In-Store
• Online
• Mobile

Saudi Arabia Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model

• Seller Driven
• Payment Instrument Driven
• Others

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Online

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by In-Store

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Mobile App

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Retail

• Diversified Retailers
• Department Stores
• Specialty Stores
• Clothing, Footwear & Accessories
• Toy & Hobby Shops
• Supermarket and Convenience Store
• Home Merchandise
• Other

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Accessibility

• Card Based Access
• Digital Access

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type

• B2C Consumers
• B2B Consumers

Saudi Arabia Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type

• Free
• Free + Premium
• Premium

Saudi Arabia Loyalty Platform Spend Market Size and Future Growth Dynamics by Software Use Case

• Analytics and AI Driven
• Management Platform

Saudi Arabia Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner

• In House
• Third Party Vendor

Saudi Arabia Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment

• Cloud
• On-Premise

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms

• Software
• Services

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Software Use Case Platforms

• Custom Built Platform
• Off the Shelf Platform

Saudi Arabia Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour

• By Age Group
• By Income Level
• By Gender

Reasons to buy

• Insights on Strategy & Innovation: Navigate through future direction of the loyalty programs and platforms market by understanding strategic initiatives taken by key players to gain market share and innovation.
• In-depth Understanding of Loyalty Market Dynamics in Saudi Arabia: Understand emerging opportunities and future direction of the loyalty programs and platforms market, key drivers, and trends. Benefit from a detailed market segmentation with 50+ KPIs.
• Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics.
• Competitive Landscape: Get a snapshot of competitive landscape with key players and market share in Saudi Arabia. Formulate your strategy by gaining insights into the current structure of the market.
• Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the loyalty sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.
• Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments.